Issue 4, 2014

Patokina O. A., Pustovalova T. A. «At Pif ’s»: on Mutual Funds, or How to Make Decisions on the Market of Collective Investments.

Case is devoted to the problem of making investment decisions through mutual funds, and revealing factors, which have an influence on such decisions. The case is addressed to the students learning introductory course “Financial Institutions and Markets”. Its first goal is to analyze and evaluate the mechanism of private investments by means of mutual funds. This supposes that the students grasp legal fundamentals, determine participants, understand infrastructure and principles of operating this institution of investments, the role of mutual funds in development of financial system, reveal its advantages and disadvantages for private investors. The second and more complicated task is to invite students, who have just started to study financial disciplines to think about factors effecting on mutual funds’ performance under conditions of effective market, and in particular under conditions of real Russian market, to discuss a problem of modelling criteria for measuring effectiveness and efficiency of mutual funds and management companies’ activity. Keywords: mutual funds, net worth of assets, management company, investment decision.

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